| Personally, for an older system like this I would install Gentoo. With the minimal install CD you only need a 486 and 64MB of memory. It works very well with a standard console interface, though there are some low-footprint GUI's that you can probably use even on your laptop. That way you can run things like Open Office and Firefox. Since you pretty much build Gentoo from scratch, with only the hardware support you need, it can result in a very small image that runs very fast.
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Sometimes, real fast is almost as good as real time.
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